The Ridley Island Energy Export Facility (REEF) under construction at the Port of Prince Rupert in British Columbia, Jan. 19.Fred Lum/The Globe and Mail
The Metlakatla First Nation has withdrawn its support for an energy export project under construction on Ridley Island in British Columbia, escalating tensions after the Prince Rupert Port Authority’s decision to block the Indigenous group’s diversification plans.
Calgary-based AltaGas Ltd. ALA-T and Netherlands-based Royal Vopak NV started construction on the $1.35-billion Ridley Island Energy Export Facility, or REEF, in 2024. REEF, which is co-owned equally by AltaGas and Vopak, plans to begin exports of liquefied petroleum gas such as propane and butane to Asia by the end of 2026.
The Prince Rupert Port Authority granted exclusive rights to export liquefied petroleum gas to Vopak in 2015. Vopak subsequently entered into a joint venture with AltaGas.
Metlakatla, as one of the co-owners of coal exporter Trigon Pacific Terminals Ltd. on Ridley Island, is upset that the port authority has frozen out the First Nation and other Trigon partners in their bid to diversify into different commodities, notably propane and butane.
The dispute was triggered when the port authority rejected Trigon’s diversification plans to protect the export monopoly on liquefied petroleum gas from Ridley Island. “This is why Metlakatla has notified federal and provincial regulators that we have withdrawn our consent for REEF,” Robert Nelson, Metlakatla’s elected chief councillor, said in a statement.
Regulators that have been notified include the Impact Assessment Agency of Canada, Canada Energy Regulator and B.C.’s Environmental Assessment Office.
Ridley Terminals Inc., a federal Crown corporation, formerly owned the coal-exporting facility at the Port of Prince Rupert, but Ottawa sold it in 2019.
The buyers were New York-based Riverstone Holdings LLC and AMCI Group of Connecticut, which own 90 per cent of the terminal now operated by Trigon. The Lax Kw’alaams Band and Metlakatla hold a 10-per-cent stake in Trigon.
“Unless this matter is resolved and our rights are upheld, we will use all means necessary to rectify the situation, including opposing any further authorizations and permits that AltaGas and Vopak may require to operate and expand the REEF facility,” Mr. Nelson said.
Plans call for REEF to spend a further $110-million to expand export capacity at the site located on 77 hectares of land leased from the port authority. This optimization project is scheduled to be completed in the second half of 2027.
AltaGas, which will be REEF’s operator, said REEF has awarded Indigenous‑owned and affiliated businesses about $350-million in contracts and services.
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Randy Toone, an AltaGas executive vice-president, said REEF has mutual benefit agreements with six First Nations, including Metlakatla, and he expressed disappointment that the relationship with Metlakatla is being characterized negatively.
“Our federal approvals have not been challenged by the Metlakatla within the statutory time frame required,” he said in a statement. “If a project could receive full consent and regulatory approval – only to have that consent withdrawn years later with government support allowing that change – it would fundamentally undermine the rule of law.”
Mr. Toone said the Port of Prince Rupert is already positioned as a multicommodity export gateway, and future development should avoid duplicating infrastructure for the same commodity.
The Prince Rupert Port Authority defended its procedures. “The provision of exclusive rights for specific cargoes enables the certainty required to advance large capital projects, secure investment in vital trade infrastructure and fulfill PRPA’s mandate of enabling Canadian trade,” port authority spokesperson James Cain said in an e-mail.
In 2024, Metlakatla filed a lawsuit in B.C. Supreme Court, alleging the port authority “breached its constitutional duties to adequately consult and accommodate Metlakatla.” The plaintiff argues that the port authority approved what amounts to a monopoly for REEF.
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A judge ruled last week in Metlakatla’s favour to allow the lawsuit to proceed, despite the port authority’s efforts to have the case struck out.
Trigon filed a separate lawsuit in B.C. Supreme Court in 2023, claiming that the port authority reneged on a leasing arrangement that would have allowed Trigon to diversify its exports.
AltaGas also owns 70 per cent of Ridley Island Propane Export Terminal, or RIPET, while Vopak holds the remaining 30 per cent. RIPET began exports to Asia in 2019.
The port authority, which reports to federal Transport Minister Steven MacKinnon, serves as the landlord for tenants such as Trigon on Ridley Island.
“This is the time for everyone in Canada to put aside the barriers that have stood in the way of our collective success and work together to realize our full potential as a nation,” Trigon chief executive officer Craig Olley said in a recent statement.
As the U.S. trade war persists, Ottawa has been seeking to smooth the way for economic diversification and reducing dependence on American customers.
Mr. Nelson said the port authority is restricting Canada’s ability to expand trade with Asia.
“If we had learned about the export monopoly during the REEF consultation process, we would not have consented to the REEF project,” he said. “Canadian energy producers want to ship more Canadian propane to Asia-Pacific customers, but the export monopoly is limiting their access to this premium market.”